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Canadian mortgage lenders, prepare an Environmental Indemnity as part of the documentation for a mortgage with this easy template form. The mortgagor indemnifies the mortgage lender against any claims or losses arising from environmental contamination of the property that is being mortgaged as security for the loan. This Canada Environmental Indemnity form is in MS Word format and is fully editable.
ENVIRONMENTAL INDEMNITY THIS AGREEMENT is made effective the _____ day of __________, _____. BETWEEN: «BORROWER» a corporation incorporated pursuant to the laws of _______________ (hereinafter called the “Borrower”) OF THE FIRST PART - and - «LENDER» a corporation incorporated pursuant to the laws of ________________ (hereinafter called the “Lender”) OF THE SECOND PART WHEREAS the Lender has agreed to provide the Borrower certain loan facilities pursuant to the Commitment Letter dated ___________________ and the Borrower has agreed to grant to the Lender certain security in support thereof (all security being collectively call the “Security”); AND WHEREAS the Lender requires as a condition of its loans, that the Borrower indemnify and hold the Lender harmless against and from certain obligations for which the Lender may incur liability (whether as holder of or assignee under the Security or in the enforcement or the realization of the Security) pertaining to the abandonment or reclamation of the property to which the Security applies (the “Property”) or by reason of the threat or presence of any Contaminant, at or near the Property; AND THEREFORE, in consideration of the premises set out herein and in the Security and for _________ Dollars ($_______) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Borrower, the Borrower, intending to be legally bound, hereby agrees as follows: 1. Recitals The foregoing recitals are incorporated into this Agreement by this reference. 2. Defined Terms (a) “Contaminant” includes, but is not limited to, any pollutants, noise, dangerous substances, liquid waste, industrial waste, hauled liquid waste, toxic substances, hazardous wastes, hazardous materials, hazardous substances and contaminants including any of the foregoing as defined in any Environmental Law now or hereafter in effect. (b) “Environmental Law” means any and all applicable international, federal, provincial, municipal or local laws, statutes, regulations, treaties, orders, judgments, decrees, ordinances, official directives and all authorizations, relating to the environment, occupational health and safety, or any Environmental Activity. -2- (c) “Environmental Activity” means any past, present or future activity, event or circumstance in respect of a Contaminant, including, without limitation, its storage, use, holding, collection, purchase, accumulation, assessment, generation, manufacture, construction, processing, treatment, stabilization, disposition, handling or transportation, or its Release, escape, leaching, dispersal or migration into the natural environment, including the movement through or in the air, soil, surface water or ground water. (d) “Release” includes discharge, spray, inject, inoculate, abandon, deposit, spill, leak, seep, pour, emit, empty, throw, dump, place and exhaust which might occur in any manner whatsoever. 3. Indemnity (a) The Borrower shall at all times indemnify and hold harmless the Lender against and from any and all claims, suits, actions, debts, damages, costs, losses, obligations, judgments, charges, and expenses, of any nature whosoever suffered or incurred by the Lender as holder of or assignee under the Security or in the enforcement or realization of the Security or on account of any Environmental Law, including the assertion of any lien thereunder, with respect to: (i) the Release of a Contaminant, the threat of the Release of any Contaminant, or the presence of any Contaminant affecting the Property, whether or not the same originates or emanates from the Property or any contiguous real property, including any loss of value or property as a result of any of the foregoing; (ii) any costs of removal or remedial action incurred by the Government of _________ or any provincial government or any other government or governmental body, or any costs incurred by any other person or damages from injury to, destruction of, or loss of natural resources in relation to the Property or any contiguous real property, including reasonable costs of assessing such injury, d
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